Landlords feel unfairly treated as industry body warns of housing crisis

Landlords feel they are being “unfairly penalised,” while tenants are being granted too many rights, according to the latest Propertymark Housing Insight Report.

The report reveals the ongoing issue of demand outstripping supply, with many renters struggling with affordability.

Propertymark is urging the government to introduce measures to attract investment in the private rented sector.

Tenants being given too many rights

According to Propertymark’s September report, 35% of adults reported finding it ‘very or somewhat difficult’ to afford their rent or mortgage payments.

Demand continues to massively outpace supply, with the average number of applicants per member branch still hitting around 10 people for each available property.

A North West agent told Propertymark that landlords leaving the market is a growing concern.

The agent said: “There are not enough properties available to meet the demand and landlords are already considering selling as we get nearer to the Renters’ Rights Bill becoming a reality.

“The general feeling with landlords is that they are being unfairly penalised, and tenants are being given too many rights to the detriment of landlords.”

An agent in the South West echoed those sentiments and said the government must do more to provide investment in the private rented sector.

The agent said: “Landlords are still leaving the sector, and the government is providing no incentives to attract investment hence, we are heading into a housing crisis.”

Tightened purse strings are being seen across the whole PRS

The average number of new prospective tenants registered per member branch continues to reflect high market demand. Registrations remained steady, with 113 recorded in September 2024, compared to 112 in August 2024.

In September 2024, average UK rents were 8.4% higher than in the same month the previous year and 0.7% higher than in August 2024. The average rent stood at £1,336 in England, £973 in Scotland, and £760 in Wales.

Nathan Emerson, chief executive of Propertymark, said: “Tightened purse strings are being seen across the whole private rented sector.

“The recurring picture of demand far outstripping supply levels is not drastically worsening; however, levels are not improving and will continue to play a huge role in the continuous unaffordable landscape of the sector.

“We really, need to see the UK government provide a clear and supported pathway for the private rented sector to flourish to support current and future landlords.”

Interest rate cut sees more people selling

In the residential housing market, Propertymark reveals that the interest rate cut to 4.75% motivated many people to sell their properties.

According to Propertymark’s report, the average number of sales agreed per member branch saw further positive progression with 13 homes placed for sale per member branch.

The average number of new prospective buyers registered per member branch saw an uplift in September 2024 to 96 per member branch, representing a two-year high.

The average UK house price increased by £2,076 to £290,000 in September 2024. This remains at around 8 times the average annual gross earnings.

Mr Emerson said: “With interest rates slightly easing and improved mortgage deals coming to the market, we are seeing more people looking to make their next home move as their financial stability and reassurance improves.

“The announcement of Stamp Duty rises in England and Northern Ireland from April 2025 will likely push more people to the market in hopes of completing to, in some cases, save thousands on their next home purchase.

“With more appetite from buyers comes more homes coming onto the market, so we expect to see activity accelerate over the coming months moving into 2025.”

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